ECONOMICS, ECOLOGY AND THE ENVIRONMENT
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ISSN 1327-8231
ECONOMICS, ECOLOGY AND
THE ENVIRONMENT
Working Paper No. 131
Crocodiles Farms and the Management of
Saltwater Crocodiles in the Northern Territory:
Results of a Survey of NT Crocodile Farmers
plus Analysis of Secondary Information
by
Clem Tisdell, Clevo Wilson and Hemanath
Swarna Nantha
October 2005
THE UNIVERSITY OF QUEENSLAND
ISSN 1327-8231
WORKING PAPERS ON
ECONOMICS, ECOLOGY AND THE ENVIRONMENT
Working Paper No. 131
Crocodile Farms and the Management of Saltwater Crocodiles in the
Northern Territory: Results of a Survey of NT Crocodile Farmers Plus
Analysis of Secondary Information
by
Clem Tisdell*, Clevo Wilson† and Hemanath Swarna Nantha‡
* School of Economics, The University of Queensland, Brisbane 4072 QLD, Australia.
Email: c.tisdell@economics.uq.edu.au
†
School of Economics and Finance, Queensland University of Technology, 2 George Street, GPO Box
2434, Brisbane 4001, QLD, Australia.
Email: clevo.wilson@qut.edu.au
‡
School of Economics, The University of Queensland, Brisbane 4072 QLD, Australia.
Email: h.swarnanantha@uq.edu.au
WORKING PAPERS IN THE SERIES, Economics, Ecology and the Environment are published by the School of Economics, University of Queensland, 4072, Australia, as follow up to the Australian Centre for International Agricultural Research Project 40 of which Professor Clem Tisdell was the Project Leader. Views expressed in these working papers are those of their authors and not necessarily of any of the organisations associated with the Project. They should not be reproduced in whole or in part without the written permission of the Project Leader. It is planned to publish contributions to this series over the next few years. Research for ACIAR project 40, Economic Impact and Rural Adjustments to Nature Conservation (Biodiversity) Programmes: A Case Study of Xishuangbanna Dai Autonomous Prefecture, Yunnan, China was sponsored by the Australian Centre for International Agricultural Research (ACIAR), GPO Box 1571, Canberra, ACT, 2601, Australia. The research for ACIAR project 40 has led in part, to the research being carried out in this current series. For more information write to Emeritus Professor Clem Tisdell, School of Economics, University of Queensland, Brisbane 4072, Australia.
TABLE OF CONTENTS
Abstract 1
1. Introduction 2
2. Purpose of the Survey and Procedure 4
3. Results 6
3.1. Respondents 6
3.2. Size of crocodile farms 8
3.3. Knowledge of and attitudes towards the crocodile management
plan of NT as reported by crocodile farms 9
3.4. Involvement of crocodile farms in harvesting crocodile biota and
egg costs 9
3.5. Views of crocodile farmers on whether the crocodile
management scheme of NT encourages landholders to conserve
crocodiles and the perceived benefits to landholders of being
paid for crocodile harvesting on their land 14
3.6. Production trends and trends in number of farms farming
crocodiles in NT 15
3.7. Economic features of crocodile farms operating in NT –
nature of sales (exports, sources of income), whether farmers
have multiple farms or not and where, economic advantages and
disadvantages of NT operations 17
3.8. Additional comments by crocodile farmers about crocodile
management in the NT 20
4. Concluding Comments 20
5. Acknowledgements 23
6. References 23
Appendix: Questionnaire distributed to Crocodile Farmers in NT about
Management of Saltwater Crocodiles in the Northern Territory 24CROCODILE FARMS AND THE MANAGEMENT OF SALTWATER
CROCODILES IN THE NORTHERN TERRITORY:
RESULTS OF A SURVEY OF N.T. CROCODILE FARMERS PLUS
ANALYSIS OF SECONDARY INFORMATION
Abstract
After outlining some relevant background information about the NT crocodile
farming industry and explaining the purpose of our survey of NT crocodile farmers
conducted in the first half of 2005, this paper reports the results of the survey. The
information received from the survey is supplemented by secondary data and by
information from secondary sources. This report covers the location of respondents;
the size of crocodile farms; farmers’ stated knowledge of and attitudes towards the NT
Crocodile Management Plan; the involvement of farms in the harvesting of crocodile
eggs and the costs involved; views of crocodile farmers about whether the NT
Crocodile Management Plan encourages landholders to conserve crocodiles and their
perceptions of the benefits to landholders; predicted production trends and trends in
the number of farms operating in NT; economic characteristics of crocodile farms
producing in NT including the economic advantages and disadvantages of crocodile
farming in NT. Concluding comments provide, amongst other things, an overview of
the structure of the crocodile farming industry in the NT gleaned from a consideration
of data available from the NT Government’s Department of Business, Industry and
Resource Development.
11. Introduction
The Northern Territory Government in Australia has adopted a policy of trying to
conserve crocodiles by allowing their managed commercial use. Its approach is based
on the philosophy of conservation through sustainable use. Crocodile farms in the
Northern Territory (NT) play a pivotal role in ensuring the success or otherwise of
this policy because they are the link between landholders and the market for crocodile
products. Crocodile farmers collect crocodile eggs, and to a lesser extent hatchlings
and juveniles from landholdings, husband these, and sell the resulting products to end-
users. Their products mainly consist of skins (mostly raw) and flesh.
Table 1 provides a list of products that have been produced from crocodiles on farms
in NT in the period 1999-2004. The quantities of some of the more specialised
products sold, such as blood samples, vary and are zero in some years. Table 1 also
list NT farm shipments for 1999 and for 2004. It can be seen that for some product
categories, there are no shipments in these years. It can also be seen that the range of
crocodile products sold by NT farmers had declined in 2004 compared to year 1999.
Table 1 List of crocodile (C. porosus) products traded by NT crocodile farms in
the period 1998-2005 and quantities in the calendar years 1998 and 2000
List of crocodile products Quantities traded a
traded, 1998-2005 1998 2004 Change
Belly skins (for export) 6,881 4,526 -2,355
Belly skins (for domestic
1,193 538 -655
market)
Flesh 42,931.3 kg 19,017.5 kg -23,914 kg
Backstraps 6,790 4,468 -2,322
Feet 5,322 237 -5,085
Heads 1,682 12 -1,670
Teeth 1,282 0 -1,282
Tail tips 100 0 -100
Blood - 650 ml -
a
Numbers unless otherwise stated
Source: Unpublished information, Northern Territory Government Department of Primary Industries,
Fisheries and Mines, 2005.
Apart from being engaged in the husbanding of crocodiles for consumptive use, some
NT crocodile farms earn income from tourism and research.
2Crocodile farmers in the NT obtain their stock either by collecting crocodile biota
(mainly eggs) from landholdings or from eggs produced on their farms. While all
collect from the wild, some farms breed crocodiles on their farms.
The pivotal links between NT crocodile farms and landholders is emphasised by
Figure 1. The link is established via the ranching activities of NT crocodile farms.
Whereas ranching may provide economic incentives to landholders to conserve
targeted wildlife species if landholders receive payments for specimens harvested on
their properties, closed-cycle or virtually closed cycles (involving limited collection of
breeding stock from the wild) does not.
Processes and End-users
Products supplied by crocodile
farms to processors and end-users
NT Crocodile Farms
Supplies of croc.
Stock replacement from the wild
eggs from breeders
Crocodile biota collected by
on croc. farms croc. farmers from landholders
Landholders receive
payments from croc.
farmers for crocodile biota
Figure 1 The product chain in NT involving crocodile farms. Currently crocodile
biota collected form landholdings constitutes the main source for
restocking crocodile farms in NT
It might be noted that two species of crocodile are harvested in NT. These are the
saltwater crocodile Crocodylus porosus and the freshwater Johnston’s crocodile
Crocodylus johnston’s but commercial use of the latter (which is unique to Australia)
3is negligible (see Tisdell, Swarna Nantha and Wilson, 2005). Consequently the focus
here is on the former species.
Apart from drawing on secondary information, this paper reports on a survey of
crocodile farmers in the NT which was conducted by means of a mailed survey form,
a copy of which is attached as Appendix A. After outlining the purpose of the survey
and the procedure adopted, we report the results of the survey and supplement these
with secondary information where available and appropriate and then discuss the
results.
2. Purpose of the Survey and Procedure
The main purpose of the survey of NT crocodile farmers was to obtain their views
about the nature of NT saltwater crocodile farming industry and the economic outlook
for the industry and their opinions about the effectiveness of the government’s
strategy for managing crocodiles in the NT. The survey was designed to provide some
general background information about the crocodile farms participating in the survey,
the attitude of crocodile farmers to the crocodile management plan of NT; the
relationship between crocodile farms and collection of crocodile biota from
landholdings, crocodile farmers views about whether the NT crocodile management
plan encourages landholders to conserve crocodiles and their opinions about what
benefits landholders obtain from the harvesting of crocodiles on their properties. They
were also asked to comment on trends in the number of crocodile farms in the NT and
in possible production levels as well as to comment on various features of their
crocodile farming operations in the NT, such as the importance of exports to them, the
relative economic importance of crocodile production, tourism and research for them,
economic advantages and disadvantages of operating in NT, and whether they operate
interstate of overseas. Particular attention has been given to the economic prospects
for the industry because if it should become unviable from a commercial point of
view, the strategy of conserving crocodiles in the NT as a result of sustainable use,
will surely fail, even if crocodiles continue to be utilised in the wild for tourism. The
latter activity may generate some public sympathy for crocodile conservation, but
currently landholders obtain little or no economic benefit from it.
4The following procedure was adopted: The survey form (in the Appendix) was posted
to all the farms in the list in Table 2 obtained through the NT Parks and Wildlife
Commission, except those listed as having ceased operation. The list also noted the
perceived focus of the farms on different crocodile farming activities; production,
tourism and research.
Table 2 List of Crocodile Farms in NT obtained through NT Wildlife and Park
Commission, and main activities of these as perceived by the unknown
officer completing it. Postal questionnaires were sent to six farms listed
with an asterisk. The others had ceased operation for reasons noted
Name of crocodile farm List of main activities
Crocodylus Park* Research and tourism
Coolibah Crocodile Farm* Production and a little tourism
Darwin Crocodile Farm*† Production and tourism
Elizabeth Valley Crocodile Farm *a Hatchery
Janamba Crocodile Farm*† Production only
Lagoon Crocodile Farm* Production only
Garrangali Crocodile Farm b Closed
Letaba Crocodile Ranch c Closed
Notes: * Posted questionnaires were sent to these farms
†
The owners/managers of these farms were also interviewed
a
Manager/owner unable to respond because of injuries from a crocodile attack. Farm closed
for the time being
b
An Aboriginal farm in Nhulunbuy area. Closed because old infrastructure too costly to
maintain
c
Was located on a pastoral property near Winnellie. Closed when the property was sold
Prior to mailing the survey forms in April, 2005, direct unstructured interviews were
held with the managers or owners of the following farms: Darwin Crocodile Farm,
Crocodylus Park and Janamba Crocodile Farm. The mailed survey was completed for
two of these farms but not for Darwin Crocodile Farm. These prior interviews assisted
with the formulation of the final questionnaire, and some of the information obtained
in the informal interview of Darwin Crocodile Farm was also relevant to the final
survey. In addition, useful background information to help us formulate the
questionnaire was provided by Dr Mike Letnic who was then with the NT Parks and
Wildlife Commission and who also commented on the draft questionnaire. In
addition, Charlie Manolis and Graeme Webb of Crocodylus Park provided us with
useful suggestions on the draft questionnaire.
5Those who failed to respond to our postal survey were contacted by phone. In the end,
completed survey forms were not received from two farms which would have been in
a position to complete these.
Note that since the survey relies on self-reporting, the results may be subject to biases,
particularly if a farmer believes that the requested information is sensitive. This
should be borne in mind in interpreting the results. In order to increase the
confidentiality of the information supplied, the number identifying farmers or
responding farmers do not always refer to the same farm or farmer.
3. Results
3.1 Respondents
Of the six farms considered still to be in operation in NT in early 2005, three returned
the completed survey form. One owner/manager was not in a position to complete his
form due to injuries from a crocodile attack while collecting eggs and had, at least for
the time being, ceased operation. Thus sixty per cent of operational NT crocodile
farms were covered by the completed survey forms. Some information was obtained
from a fourth by a direct interview prior to the postal survey. Only one operating farm
failed to participate in the survey in any way.
The approximate location of the farms that participated in the survey are shown in
Figure 2. Most were located in the northern part of NT, but no close clustering was
present, except that the Elizabeth Valley farm was not too distant from Janamba. The
most ‘outlying’ farm was in the Katherine area.
6Darwin Nhulunbuy
Katherine
LEGEND
Alice Springs
Major
cities/towns
General location of
crocodile farms
Figure 2 Approximate location of crocodile farms that participated in the survey
73.2 Size of crocodile farms
Responses from two farms indicated that they were smaller than average size whereas
the third reported that it was larger than average size. Two engage in processing
crocodiles and reported that they respectively process about 3000 and 9000 crocodiles
per year averaging in length 1-1.8 metres. A third farm (Crocodylus Park) reported
that it does not process any crocodiles.
Table 3 sets out the number of crocodiles reported by respondents to be processed by
their farms and provides estimates from other sources for missing farms. On the
whole, the figures in Table 3 are higher than in Table 4. The official figures reported
to the Department of Business, Industry and Resource Development of NT.
Table 3 Number of crocodile processed by farms last year (2004) as reported by
respondents, and as supplemented
Farm Number of head processed
1 9,000
2 5,000 a
3 4,800 b
4 3,000
5 0
Total 21,800
a
Estimate (possibly for 2004) obtained from data available on the crocodile farm’s Internet website
(Porosus Pty. Ltd., 2004). The estimate was obtained as follows. The farm plans to increase output to
10,000 animals a year from 320 female breeders and a stock of 30,000 individuals. It currently has 148
female breeders (half of the planned 320 breeders). Therefore, 10,000 x ½ = 5,000 processed animals a
year at present. The number of one- and two-year old animals in this farm is about 5,000 individuals.
This value may also serve as a surrogate measure of animals skinned a year, and is consistent with the
value calculated above.
b
Estimate (possibly for 2000) from the Australian Government Rural Industries Research and
Development Corporation publication (Hyde, 2000). The book features the farm concerned. In the
relevant section, the farm’s production is revealed to be 400 skins a month. Multiplying this by 12
months gives the tabulated value.
Table 4 Number of crocodiles processed by individual crocodile farms in the NT
in 2004 according to records of the Department of Business, Industry and
Resource Development, NT
Farm* Number of ‘raisings’ processed
1 1,733
2 1,021
3 24
4 2,286
5 40
Total 5,104
*Farms are listed in no particular order
a
These consist of ‘raisings’, crocodiles raised typically to about 3 years of age
83.3 Knowledge of and attitudes towards the crocodile management plan of
NT as reported by crocodile farms
All the responding crocodile farmers surveyed stated that their knowledge of the
current crocodile management plan of the NT government is either good or very good.
They all said they were satisfied, on balance, with the NT management plan, and do
not think any changes in it are required.
However, one farmer said he would like to see “more dialogue between government
and farms”.
Furthermore, two of the responding farmers would like to see change in the Australian
government’s policies that affect the industry. Specifically, they would like ”CITES
permits for commercial export controlled by state instead of Canberra (to expedite
permit application)” and would like live commercial exports allowed.
3.4 Involvement of crocodile farms in harvesting crocodile biota and egg costs
The three responding crocodile farmers each reported collecting 8000, 4000 and 2428
crocodile eggs in 2004, and one of these said it harvested 200 adult crocodiles and
another reported harvesting 20 adults in 2004. These three farms reported obtaining
most of their harvest from the West coast of NT (e.g., the Moyle River, located on
Aboriginal land, the Fitzmaurice River bordered on one side by Aboriginal land, and
the Victorian River) and from the Adelaide River, which flows into Adam Bay east of
Darwin. It is also known that collections are made from Mary River further east and
from Aboriginal land in Arnhem Land. However, collection is reported (interview
with Cook of Janamba Crocodile Farm) to be absent below Arnhem Land in the river
systems flowing into the Gulf of Carpentaria. Therefore, crocodile egg collection
basically occurs in NT in an arc extending from the Western Australia border around
to and including Arnhem Land in the catchment areas of rivers flowing towards the
sea. The generalised area of collection of saltwater crocodile biota in NT is indicated
in Figure 3.
9INDIAN OCEAN ARAFURA SEA
Darwin
ARNHEM LAND
GULF OF
Katherine CARPENTARIA
NT
Figure 3 Map of the top end of the Northern Territory showing the generalised area
of collection of saltwater crocodile eggs by crocodile farmers
10Comparing Figure 2 and Figure 3, it can be seen that crocodile eggs collected by
crocodile farmers often have to be transported long distances before they reach their
farms. Helicopters are often used to access collection sites and transport eggs.
Crocodile farmers may obtain crocodile eggs to replenish their stock of crocodiles
from breeders on their farms or by collecting eggs from the wild. Eggs collected from
the wild may be gathered from Aboriginal Lands held under native title or from
pastoral lands, usually under leasehold or freehold titles. We asked crocodile farmers
what percentage of their eggs they usually harvest from the wild, and of these, what
percentage is obtained from Aboriginal lands. The remainder of their collections from
the wild come from private cattle properties. Table 4 summarises the responses
received.
Table 5 The percentage of crocodile eggs incubated on farms stated by
respondents to be collected from the wild and the percentage of these
collected from Aboriginal lands. The remainder of the collection is form
cattle properties
Farm* Eggs from wild Wild eggs from Wild eggs from
(%) Aboriginal land cattle properties
(%) (%)
Farm 1 100 0 100
Farm 2 75 40 60
Farm 3 30 70-80 20-30
Farm 4 a ? 70-80 20-30
* Farms are listed in no particular order
a
Information from interview only
The percentage of eggs from the wild in relation to those incubated were said the
range from 30 to 100 per cent by respondents. The extent to which eggs were
harvested from Aboriginal lands varied widely. While one reported no collection from
Aboriginal lands of eggs taken from the wild, most respondents collected from
Aboriginal lands. In two cases, 70-80% of eggs harvested were obtained from
Aboriginal lands. All respondents were engaged in ranching to some extent, that is
harvesting eggs from the wild to be later artificially incubated on their farms.
11Crocodile farmers were asked why they collected eggs from the while rather than
relying more on farm-laid eggs. The following reasons were given by those
respondents:
• Requires less infrastructure; wild harvest is conservation, farm laid is not [Farm 1]
• Financial reasons, ethical reasons, enjoyment [Farm 2]
• Part of nest/population monitoring [Farm 3]
Farmers believe that ranching rather than closed or nearly closed cycle farming is
likely to be more conducive to conservation. Two of the respondents indicated that it
is cheaper to rely on harvested eggs rather than farm-laid eggs. This is probably true
but one of larger farmers, in a private interview, stated that for him the cost of farm-
laid and harvested eggs was little different. However, he liked to collect some of his
supplies from the wild, especially from Aboriginal lands, because this gave economic
benefit to landholders. This is probably the type of ethical reason that Farmer 2,
mentioned above, had in mind. It is also interesting to note that enjoyment of the
collection activity from the wild is another reason given. Collection can be both
dangerous and exciting.
It seems that some collectors enjoy the adventure involved in collecting eggs from the
wild during which they run the risk of being attacked by nesting female crocodiles.
Farmers were asked to state (i) the range of price paid to landholders for each
crocodile egg harvested, (ii) the price paid on average for each egg, (iii) the factors
that influence prices paid, (iii) to give an estimate of the total cost of each egg
harvested from the wild, and (iv) to provide an estimate of the total cost of each egg
produced from farmed crocodiles. The results for these are presented in Table 6.
While there are gaps in Table 6, some observations can be made. This table reveals
that in most cases the price paid to landholders varies between properties depending
on the cost of collection and competition. The cost of collection depends on such
factors as ease of access to nesting sites on a property and the logistics, distance and
ease of transport from the field to the crocodile farm. The average price per egg
reported to be paid by two farmers for eggs in 2004 was $20 but one reported on
12average price of $8. After taking account of their full cost of collecting eggs from the
wild, two farmers reported that average overall cost of wild eggs delivered to their
farm was in effect 150 per cent on average of the average price per egg they paid to
landholders. In one case, the ‘landed’ cost was estimated to be $20 per egg and in
another case $50 per egg.
Table 6 Responses of crocodile farmers to relevant questions on crocodile egg
prices and costs
Farm* Range of prices Average The main factors Estimate of total Estimate of total
paid to price per that result in the cost per crocodile cost per egg of
landholders in crocodile price of crocodile egg harvested in producing eggs
the last year by egg eggs varying the wild last year from your
your farm for harvested between (including farmed
each egg landholdings payments to crocodiles last
landholders) year
Farm 1 No variation 8 Nil – one price for 20 -
all
Farm 2 15-20 20 Cost of collection 50 -
Farm 3 - 20 East of access, - 30
logistics and
competition
Farm 4 a 5-10 (goes up to 20) - - - -
* Farms are listed in no particular order
a
Information from interview only
The crocodile farmers were asked what the trend is in the average cost for eggs
harvested. While one farmer stated that it was about constant, two farmers stated that
the trend was upwards. One farmer commented that this “will eventually restrict wild
harvest”.
The crocodile farmers were also asked what the trend is in the average cost for eggs
produced on the farm. One farmer stated that the cost is upwards while another stated
that it was about constant. The farmer who said that the trend in cost was upwards
added that “no efficient crocodile breeding facility is in existence yet in Australia”.
133.5 Views of crocodile farmers on whether the crocodile management scheme
of NT encourages landholders to conserve crocodiles and the perceived
benefits to landholders of being paid for crocodile harvesting on their
land
It is an objective of the NT crocodile conservation plan that the commercial
harvesting of crocodile biota should encourage the conservation of crocodiles.
Crocodile farmers were asked if they thought the fact that landholders are paid for the
right to collect crocodile eggs and crocodiles on their land encourages them to
conserve crocodiles. All three respondents said it does.
To clarify this further, crocodile farmers were asked whether holders of cattle
properties are likely to conserve more crocodile habitat as a result of being paid for
crocodile harvesting on their land. Two of the respondents said they were unsure.
While the third said yes, it seemed from the statement made by this farmer that this
has not happened yet.
“As the collection becomes more professional, efficient and lucrative, some
stations are seeing the logic of this. Many stations have absentee owners,
however, and rely on managers who may not be particularly professional or
interested.”
Crocodile farmers were also asked whether they thought traditional Aboriginal
landholders are likely to conserve more crocodile habitat as a result of payments
received from crocodile harvesting on their land. One farmer stated that he is unsure.
Another said ‘no’, adding that “some exceptional leaders may recognise the threats
looming over the ecosystems on their traditional lands but most are occupied with the
challenges of day to day living”. A third farmer stated that this question is “not really
applicable”, arguing that their habitat is not under threat to begin with, whereas one
would expect it to be under heavy presence when subject to pastoral land use.
Crocodile farmers were asked to list the main benefits (social or otherwise) that
holders of cattle properties in their view obtained from being paid for crocodile
harvest on their lands; and to do likewise for Aboriginal landholders. The responses
received are set out in Table 7.
14Table 7 Responses of crocodile farmers to questions about the benefits obtained
by pastoralists and Aboriginal landowners from payments as a result of
payments for allowing crocodile farmers to harvest crocodiles on their
lands
Farm* What do you consider to be the main What do you consider to be the main
benefits (social or otherwise) obtained by benefits (social or otherwise) obtained by
paying holders of cattle properties for paying Aboriginal landholders for allowing
allowing crocodile harvesting on their crocodile harvesting on their land?
land?
Responses Responses
Farm 1 N/r N/r
Farm 2 1. A rare attempt to live with Australia not 1. Giving money for something in return, not
against it; 2. A truly sustainable wealth just charity; 2. Giving them a chance to go on
producer (unlike cattle); 3. An example of country and leave the community; 3. Allowing
diversification of income experience of an equal business negotiation
(something that, other than mining, many
people never have)
Farm 3 1. Positive attitude towards crocodiles; 2. 1. Positive attitude to crocodiles; 2. Economic
Greater likelihood to tolerate crocodiles on benefits based on sustainable use of crocodiles
their land
* Farms are listed in no particular order
Two crocodile farmers stated that they do not encounter any difficulties with
landholders in gaining access for harvesting crocodile eggs or crocodiles, whereas a
third said that he does but that it is part of the business and that difficulties are
resolved once both sides get to know each other.
3.6 Production trends and trends in number of farms farming crocodiles in
NT
The continuing success of conservation of crocodiles in the NT as a result of their
sustainable commercial use depends on crocodile farming remaining economically
viable. With this in mind, crocodile farmers were asked their views about general
trends in crocodile farming in NT.
Crocodile farmers were told that the number of crocodile farms in NT seemed to have
peaked and since then has declined slightly. They were asked why do you think the
decline has occurred. The reasons given by the three respondents are set out in Table
8. One crocodile farmer (Farmer 1) attributed this to a combination of factors: a
shortage of available crocodile eggs, a temporary decrease in demand for crocodile
15products for a time and lack of expertise on some farms. Farmer 2 also indicated lack
of expertise on some farms was a factor. Farmer 3 indicated that one farm was on a
cattle property that was sold and the new owners decided not to continue with the
crocodile farming side of the venture.
Table 8 Reasons given by NT crocodile farmers for the past decline in the number
of crocodile farms in NT and for their expectation that industry production
will increase
Reasons given for past decline in the number of crocodile farms:
Farmer 1:
Limited base resource – eggs. Decreased demand for product at the time, also
lack of expertise at some farms
Farmer 2:
The challenges faced are those of nay large industry but cannot be met by an
resource to history or support industries as there si non and are non. Therefore,
to succeed requires above average business skills
Farmer 3:
Land on which one farm was located was sold
Reasons given for expecting production of the crocodile industry in the NT to
rise:
Farmer 1:
Increased demand for product equals more money
Farmer 2:
Those that can rise to the many challenges will and as new type of industry wil
evolve – analogous to the pearl industry
Farmer 3:
Increased captive breeding
Crocodile farmers were also asked whether they think production in the NT crocodile
farming industry will increase in the future, remain constant, or decline. All three
respondents stated that it would increase. The reasons they gave are set out in Table 8.
The response of Farmer 1 suggest that these might be economies of scale for farms in
the industry, that of Farmer 2 suggests that the industry will evolve into a more
sophisticated consumer-oriented industry which might expand demand, and the third
sees increased captive breeding as the key to expanding the industry.
Crocodile farmers were asked whether they think the number of crocodile farms in
NT will increase, decrease or remain unchanged. All three respondents stated that
they expected it to remain unchanged. However, one suggested that greater
16specialisation in farming activities in parts of the production process could result in
new entrants. The main barrier to entrants was seen by two farmers to be lack of scope
for collecting additional crocodile eggs and the high initial cost of setting up a
crocodile farm. Their specific comments were:
The collection areas are covered. Cost of setting up a farm [is high] [Farm1].
Limited wild resource (eggs) [Farm 2]
The overall view expressed was although the number of crocodile farms in the
Northern Territory declined for economic reasons, the number of farms are expected
on the whole to stay constant in the future. Production is expected to rise. Therefore
production per farm can be expected to rise on average. Possibly there are economies
of scale in production at the farm level. Expansion could be restricted by the limited
amount of eggs available for harvest from the wild. It seems likely that major
expansion in the production of the NT crocodile industry would require greater
dependence on farm-laid eggs.
3.7 Economic features of crocodile farms operating in NT – nature of sales
(exports, sources of income), whether farmers have multiple farms or not
and where, economic advantages and disadvantages of NT operations
Crocodile farmers were asked if their farming enterprise in the NT is involved in the
export of crocodile products and if ‘yes’ whether export income was very important,
important or unimportant for the economic success or viability of their business.
Crocodylus Park and Janamba Crocodile farm both mentioned that they are involved
in the export of crocodile products. The manager of Coolibah Crocodile farm stated
that his enterprise is not directly involved in the export of crocodile product. Darwin
Crocodile Farm, which is the second largest crocodile farm in NT, is also involved in
export of crocodile products according to secondary sources. The fifth farm, Lagoon
Crocodile Farm, is also involved in the export of crocodile products according to a
secondary source.
For the larger-sized crocodile farms in the NT, export income is important. It is, for
example, important for Janamba Crocodile Farm, and it is indirectly of importance for
17few farms that do not export. For example, the Elizabeth Valley Crocodile Farm
(currently closed) has been a supplier of hatchings to Janamba. Possibly also
indirectly some of the product of Coolibah Crocodile Farm is exported. Crocodylus
Park reported that export income was relatively unimportant for it, probably because it
had greater relative dependence on tourism and research as a source of income than
other farms in NT (see Table 2). Nevertheless, to the extent that tourists come from
overseas there is external economic dependence and Crocodylus Park is successful in
gaining some overseas research contracts and consultancies.
Crocodile farmers were asked which countries are the main competitors in the export
market. One significant exporting farm said that its main competition in the export
market comes from Nile crocodile farming in Africa, from alligator farming in the
USA, and saltwater (C. porosus) farming in Asia, mainly Indonesia, China and
Thailand.
Crocodile farms may obtain income from three sources: crocodile production, tourism
and research. Farmers were asked in relation to the economics of their crocodile
farming operations to rank the importance of each of these factors for their business
success on a scale: (1) Very important, (2) Important, (3) Of little importance, (4) Of
no importance. The responses received are shown in Table 9.
Table 9 The rankinga of responding crocodile farmers of the importance to them of
crocodile production, tourism and research for their economic success
Respondent Crocodile Tourism Research
production
b
Farm 1 V. important Important
c
Farm 2 V. important V. important
Farm 3 Important V. important Important
a
Respondents could rank activities as (1) very important, (2) important, (3) of little importance and
(4) of no importance
b
Of little importance
c
This respondent stated that research was more important for his business success than for others in
the industry but seems to have in mind the application of his research results directly to his
crocodile production
It may have been that some respondents interpreted this question differently because it
was quite open-ended. All respondents reported that production was important for
their economic viability (two said it was very important), and only one believed that
18tourism was of importance for its economic viability and rated it as very important for
its economic viability. Rather unexpectedly all three responding crocodile farms said
that research was important for their economic viability.
At first glance, the result just mentioned seems to be at variance with the observation
in Table 2 which only lists research as important for Crocodylus Park. Possibly the
listing there is of estimated direct sources of income; Crocodylus Park earns some
income from research contracts and consultancies. In other cases, the perceptions of
the managers of Coolibah and Janamba appears to be that their own research and its
direct application plays a major role in their business success. The industry is
relatively new so there is a lot of scope for improving production and marketing
methods.
All of the crocodile farms in NT operate at only one site in NT but as pointed out
above, homee are very close to one another. Only one crocodile farmer farms in other
states. This farmer has a farm in Northern Queensland and another in the north of
Western Australia. In addition, this farmer has a network of contacts in Papua New
Guinea and assists in the marketing of crocodile products from there. However, none
of the NT farmers have overseas farming operations.
Crocodile farmers were asked to outline briefly the economic advantages and
disadvantages of crocodile farming in NT. Responding farmers reported that the
advantages of crocodile farming in the NT are:
(1) A hot/warm climate which stimulates growth of crocodiles.
(2) Availability of natural crocodile resources such as crocodile eggs in the wild.
Disadvantages were said to be:
(1) Lack of local availability of cheap food supplies for crocodiles. Food often has
to be freighted to NT and this is costly [In some areas, crocodiles are fed
‘waste’ by-products from poultry processing plants and meat works].
(2) Small market for products locally.
(3) High cost of labour, capital works and logistics in the NT.
193.8 Additional comments by crocodile farmers about crocodile management
in the NT
Crocodile farmers were invited to add any extra points they wished to make about
policies for the management of crocodiles in the NT, and about the future of crocodile
farming in the NT. Two farmers stated that the government sector should consult and
work more closely with the crocodile industry. Another stated that the slow evolution
of the crocodile industry should not deter greater utilization of Australia’s natural
resources in a sustainable way. One farmer suggested that the development of
crocodile farming in NT would be helped if the government provided advice on farm
design and engineering as well as training.
4. Concluding Comments
While, in general, responding crocodile farmers stated that they are satisfied with the
NT Crocodile Management Plan, some thought that crocodile management in NT
would be more efficient if the NT Government rather than the Australian
Commonwealth Government were responsible for the issue of export permits. All
crocodile farmers collect crocodile eggs from the wild but some also rely on farm-laid
eggs. The cost of collecting crocodile eggs from the wild is considerable and amounts
on average to be about 150% of the amount paid to landholders for eggs collected
from their properties. The amount paid to landholders for crocodile eggs collected on
their properties in 2004 varied according to locality and conditions involved in
collecting the eggs and the crocodile farm. The most frequently stated average price
was $20 per egg on average making the delivered price at the farm gate on average
$50. Nevertheless, several respondents said that the cost of farm-laid eggs exceeds on
average that of harvested eggs.
All responding crocodile farmers thought that payments to landholders for crocodile
harvesting encourages landholders to conserve crocodiles. However, most were
unsure about how this might be reflected in conservation of suitable habitat on farms
for crocodiles. One crocodile farmer stated that since Aboriginal landholders do not
significantly modify natural habitat anyway, payment to Aboriginal landholders
would not change this practice unlike on cattle properties where considerable
alteration of natural habitat occurs.
20All respondents thought that the level of production of the NT crocodile will increase
but that the number of farms operating will probably remain unchanged. One,
however, suggested that more specialisation in the industry could occur and if so, this
might raise the number of farms. Barriers to entry to the industry were said to be the
high capital cost involved in setting up a farm and the limited availability of crocodile
resources in the wild.
Given the relatively small size of the local market, the industry appears to be quite
dependent on exports, and it faces considerable competition from other exporting
countries. A least one of the crocodile farmers said that live crocodile exports should
be allowed. Presumably, the relatively high value of the Australian dollar in recent
years has added to the industry’s economic difficulties of the exporting.
Production of crocodile products is the mainstay of this farming industry. Some
farmers supplement their income by encouraging on-farm tourism. Although this is an
important source of income for at least one farm, it is of little economic importance
for most. All responding farmers stated research is important for their economic
success (mainly it is presumed because their industry is relatively young and still
evolving) but only one farm seems to earn a significant share of its income from
contract research and consultancy. Economic advantages of crocodile farming in the
NT were said to be warm or hot weather which promotes the growth of crocodiles and
the comparative closeness of farms to natural stocks of crocodiles, the eggs of which
can be harvested for restocking. Economic disadvantages included the absence of
adequate supplies of low cost food for crocodiles (such as offal and waste products
from meatworks), the high cost of transporting food and other supplies, the high costs
of capital and labour, and the small size of the local market.
It is interesting to consider some of the trends in the NT crocodile farming industry
using data from the NT Government’s Department of Business, Industry and
Resource Development. Tables 10-12 are based on this data and provide indications
of recent rends in the period 1999-2004. During this period, the number of operating
farms fell from 8 to 6 and production varied considerably. Raisings (that is crocodiles
being raised mainly for production) were at a high in 1999 and fell to a low in 2002
(see Table 10). Numbers have increased since then. Meat production (see Table 11)
21exhibited a similar patter. On the other hand, the stock of crocodile raisings (see Table
12)0 exhibited a somewhat different pattern. It fell to a low in 2001 but had increased
to a high in 2004. This appears to indicate that the production of the industry is in the
process of expanding which accords with the predictions made by responding
crocodile farmers.
Table 10 Number of crocodile ‘raisings’ processed by crocodile farms in NT, 1999-
2004
Year 1st half 2nd half Full year
1999 4,152 4,814 8,466 High
2000 a 4,104+ 3,463+ 7,567+
2001 3,813 2,626 6,439
2002 a 2,034+ 1,904+ 3,938+ Low
2003 2,364 1,750 4,114
2004 2,296 2,808 5,104
a
Figures incomplete
Source: Unpublished information, Northern Territory Government Department of Primary Industries,
Fisheries and Mines, 2005.
Table 11 Crocodile flesh production in NT in kgs, 1999-2004
Year 1st half 2nd half Full year
1999 25,711.5 19,940.2 45,651.7 High
2000 a 22,019.6+ 19,482.5+ 41,502.1+
2001 12,298.8 16,335.3 28,634.1
2002 a 7,661.9+ 7,133.0+ 14,794.9+
2003 9,149.0 9,595.3 18,744.3 Low
2004 9,309.0 9,708.5 19,017.5
a
Figures incomplete
Source: Unpublished information, Northern Territory Government Department of Primary Industries,
Fisheries and Mines, 2005.
Table 12 Stock of crocodile ‘raisings’ on NT crocodile farms, 1999-2004
As at end of As at end of June and December
Year
June December figures averaged
1999 23,280 20,852 22,066 High
2000 a 19,803+ 12,117+a 15,960+a
2001 12,378 12,961 12,669 Low
2002 a 16,587+ 17,760+ 17,173+
2003 19,413 20,136 19,794
2004 23,774 36,295 30,345
a
Figures incomplete
Source: Unpublished information, Northern Territory Government Department of Primary Industries,
Fisheries and Mines, 2005.
22Data available from the Department of Business, Industry and Resource
Development, NT indicates that there is considerable variation in the size of crocodile
farms in NT and that few farms account for the major part of production. For
example, at the end of June 1999, the stock of crocodile raisings at the largest two
farms accounted for 13,935 head of the industry stock of 23,280, that is, 60%. At the
end of June 2004, they accounted for 15,449 head in the level of industry stock of
23,774, or 65%. Thus, one-third of crocodile farms in NT accounted for almost tow-
thirds of crocodile raisings in the NT in 2004. There is also considerable unevenness
in the number of breeders held on farms. At the end of June 1999, the two largest
farms in this industry accounted for 744 of the 861 breeders in this industry, or 86%.
At the end of June 2004, they accounted for 775 breeders out of an industry total of
806, or 87%. Thus the holding of breeders is even more uneven than the crocodile
raisings, which in turn seems to be more concentrated than the holdings of hatchlings.
This may partly reflect the fact that capital and other costs rise as one moves up the
production chain.
This survey indicates that the economic conditions facing NT crocodile farmers are by
no means easy, even though respondents seem relatively confident about the future of
the industry. The continuing economic viability of the NT crocodile farming industry
is necessary if the Crocodile Management Plan of the NT is to work.
5. Acknowledgements
We thank those crocodile farmers who have assisted us with information and also Dr
Mike Letnic previously with the NT Wildlife and Parks Commission and Vicki
Sinlesa, Technical Officer, NT Department of Business, Industry and Resource
Development for providing us with secondary data. We alone, however, are
responsible for this report. An Australian Research Council Discovery Grant helped to
finance our research.
6. References
Tisdell, C.A. Swarna Nantha and Wilson, C. (2005) Australian tropical reptile
species: ecological status, public valuation, attitudes to their conservation and
commercial use. Pp.1-40 in A.R. Burk (ed.) Trends in Biodiversity Research, Nova
Science Publishers, New York.
23APPENDIX
Questionnaire Distributed to Crocodile Farmers in NT about Management of
Saltwater Crocodiles in the Northern Territory
24MANAGEMENT OF SALTWATER CROCODILES IN THE NORTHERN TERRITORY:
SURVEY FOR CROCODILE FARMERS
This survey is being conducted by the staff of the University of Queensland and Queensland
University of Technology as part of their independent research into the commercial use of
Australian tropical wildlife. This study is for scientific purposes only and is partly supported
financially by the Australian Research Council. Its purpose is to obtain views of crocodile farmers
about the saltwater crocodile farming industry and its outlook, and their opinions about the
government’s management of crocodiles in the NT. Please assist this research by completing
this survey form and returning it in the postage-paid envelope enclosed. Your identity and
answers will be kept strictly confidential and your answers will only be used for research
purposes. Respondents will be given a summary of the results.
Contact details (e.g., if you have any queries):
Clem Tisdell, School of Economics, The University of Queensland, Brisbane, QLD 4072
Tel: (07) 3365 6570 Fax: (07) 3365 7299
Email: c.tisdell@economics.uq.edu.au
Thank you. Clem Tisdell
A. BACKGROUND INFORMATION
1. Date of completion of survey: …………………………………………………………….…….
2. Name of crocodile farm: ……….……………….…………………………………………...…..
3. Name of person answering this form:
(First name)……………………….……….. (Family name)..…..….……………..…………..
4. Position of person answering this form (e.g. Manager, Manager/Owner):
…………………………………………………………………………………………………………
5. Location of crocodile farm (delivery address):
….…………………………………………………..…………………………………………………
…………………………………………………………………………………………………………
6. In the Northern Territory, do you regard your crocodile farm to be
Smaller than average About average Larger than average
7. About how many head of crocodile would you have processed in the last full year
of production? …………….…………………………. head
What on average is their length in metres? .……..……………metres long (approx.)B. CROCODILE MANAGEMENT PLAN OF NT
8. Do you regard your knowledge of the current crocodile management plan of the
Northern Territory Government to be? Very good Good Poor Very Poor
9. On balance, are you satisfied with the current crocodile management plan of the
NT Government? Yes No
Please give your reasons for your answer:
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
10. Would you like to see any changes in the current crocodile management plan of
the NT Government? Yes No
If ‘yes’, what are the main changes would you like to see?
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
11. Would you like to see any changes in the Australian Government’s policies that
affect your industry? Yes No
If ‘yes’, please indicate the main changes you would like.
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
C. RELATIONSHIP OF FARM WITH HARVESTING
12. In the last year, how many (approximately) of the following did you harvest from
the wild in NT?
….……. Eggs ……………Hatchlings ………… Juveniles ..………Adults
13. Where in the NT did you mainly collect your crocodile eggs from the wild?
1) …………………………………………..…2) ………………………………………………….
114. What percentage of your crocodile eggs are usually supplied from harvesting in the
wild? ….…………%
15. What percentage of your harvested eggs usually are obtained from Aboriginal
lands? ….…………%
16. If you have harvested crocodile eggs from the wild, why have you done this rather
than making more use of farm-laid eggs?
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
17. Landholders expect to be paid for crocodile eggs collected on their property. Please
give an indication of the range of prices paid to landholders in the last year by
your farm.
Price per crocodile egg (range) $……… to ……….
Average price per crocodile egg $………
18. What are the main factors that result in the price of crocodile eggs varying
between landholdings?
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
19. On average, what do you estimate was your total cost per crocodile egg harvested
in the wild last year? (Include payments to landholders) $.................. per egg
What is the trend in this average cost? (Tick whichever applies)
Upward Downward About constant
Any comment on the trend?
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
20. On average, what is your estimate of your total cost per egg for the last year of
producing eggs from your farmed crocodiles? $.................. per egg
What is the trend in this average cost? (Tick whichever applies)
Upward Downward About constant
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